Microsoft – S for school pt. II.

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Price still likely to be the biggest decider.

• Microsoft, in conjunction with Lenovo and JP, has launched some hardware that is more appropriate for the Windows 10 S initiative (than the nosebleed surface laptop) but it needs to bring the price even lower to really take on Google and Chromebooks.
• Four new devices have been launched starting at $189 and going up to $299 that are squarely aimed at attacking Google’s position in the education market both at home and overseas.
• The main difference between the price points is support for key functionalities such as pen-based input, touch, battery life as well as 3D.
• However, one of the JP devices has implemented Windows Hello which I think is a pointless innovation for education.
• Affordability is key to the education market and with most Chromebooks priced at $200 or under, every dollar is going to matter.
• Windows Hello is a convenience for identification, but I don’t think that it adds anything to further the education of students and so in this context, it represents added cost for no tangible benefit.
• Lenovo has been much more prudent and has included functionality which arguably improves education process and hence is more likely to be paid for by schools.
• I suspect that all devices that ship to schools will be running Windows 10 S which is more lightweight and easier to manage from and policies and app perspective.
• The app limitations of Windows 10 S (see here) mean that Windows 10 S can run effectively on devices that compete with Chromebooks but this still clearly needs some work.
• This is because there is still not yet pricing parity between Chromebooks and Windows 10 S devices.
• Chromebooks are mostly priced below $200 whereas the cheapest of the Windows 10 S devices starts at $189.
• Consequently, this is likely to mean that there is a large enough price disparity between Chromebooks and Windows 10 S devices to make an establishment think twice when buying several hundred devices.
• That being said, Microsoft has seen some market share gain in education establishments, albeit most of it has been in higher price categories.
• Microsoft also has made big concessions to students with Microsoft Education 365 which offers Office functionality at very low cost.
• This is far from altruistic and in my opinion, represents a great investment as these students will grow up knowing and preferring Office.
• This combined with increasing support from book publishers and bringing AR and Minecraft into the education sphere helps Microsoft’s offering albeit at the higher end of the price range.
• I think that this recent set of announcements helps push Microsoft deeper into education but to really take Google head-on, its devices need to be closer to the pricing of Chromebooks.
• The added tools like pen and touch help but money is so tight these days that price is still likely to be the overriding factor in the majority of cases.
• Hence, I see Microsoft making some steady gains in education but it needs to do more to really take a bite out of Google.